Monday, July 14th 2008
GeForce GTX 200 ''Worst Product Launch in the History of NVIDIA'' - Vendors
NVIDIA has been the 'hare taking a nap' for the past 18 months or so, just that when it woke up (or rather woken up), it realized that it's another hare that just blew by it. In other words, the Radeon HD 4800 series has not only proven to be a 'challenger' to NVIDIA but also a winner. There are (only) two winners here, ATI and you. The 55nm RV770 is very economical for ATI to make, sell and use in a variety of products. The same RV770 goes into making the HD 4850 that brought the GeForce 9800 GTX to its knees and forced NVIDIA to bring in a GTX+. And then you have the HD4870 which made spending $449 on the GeForce GTX 260 a joke. Yes it overclocks well and what not, but still didn't warrant that $150 price difference. Hence, over a period of three weeks or so, the GTX 260 is pushed down, 'way down' in NVIDIA's terms (explained later) to $329, which e-tailers such as Newegg.com can give you for as low as $299.
This means great news for you, like I said, there are only two winners, ATI and you. ATI gets its share of the $300 graphics card shoppers, while you get to choose between HD 4870 and GTX 260. What does NVIDIA get? Trouble. Sure the GTX 260 is selling, but selling at a loss. It takes around $100 to make the GPU alone. Selling the whole card for $299 inclusive of all taxes hurts NVIDIA, and hurts partners and retailers even more. TG Daily spoke with several retailers, some of which while maintaining anonymity, are quoted saying about the GeForce GTX 200 series as: "the worst product launch in the history of NVIDIA", also revealed is that NVIDIA could be selling "less than 3000 GTX 260/280 cards per month" in the North American markets.
In other words, retailers are not happy with NVIDIA and their stranglehold over pricing their products at both the retailer and board-partner level. Here's a chart tracking the fall of price for GTX 260:And that of a certain GeForce GTX 280 model:Speaking of the GeForce GTX 280, I admit, it's a brilliant piece of machinery. It is the one true successor to the 8800 GTX. But with products worth $300 getting close its level of performance, a 120% price margin doesn't warrant it. And also that the R700 promises significantly higher performance at a region-specific $500~$550 price-band, adds to its woes. There is a change in marketing strategy for NVIDIA and its vendors. They are cutting down on advertising GTX 200 series cards. Reason being that while sure, you have those cards selling at low prices, they can't afford to spend more in popularizing the product. Hence several e-tailers have started advertising those products NV can afford to sell at low prices. It's a great opportunity for NVIDIA to flush their current products off the market, cards such as 8800 GT, 8800 GTS 512M, 9600 series, are now selling at great prices, with discounts you can get them in the $90 ~ $150 band. It adds value since "Whatever your favorite game, an Nvidia GeForce 8800GT in SLI mode (that's 2) provides the best bang-for-the-buck performance for less than $299," says a promo.
Also with these cards facing slashes, if you happen to own a 9800 GTX, 8800 GT, GTS, etc., you can ramp up to SLI at great prices. That also applies to ATI products, with HD 3870 already below the $130 mark and MSI bringing in HD3870 X2 for $ 299 which isn't recommended for first-time buyers since HD4870 equals its performance.
Will GeForce GTX 200 series be remembered as a repeat of "Radeon 9000 > GeForce FX" episode? The answer is no, since NVIDIA does have a whole fleet of 55nm parts that increase yields ( = cheaper), making it to competitive, higher performing products. Unless that happens, and the next round of competition takes place we can't sync with what vendors are ranting about. As for now, celebrate this opportunity, gear up for summer with the latest video hardware, upgrade your rigs. God bless competition.
Source:
TG Daily
This means great news for you, like I said, there are only two winners, ATI and you. ATI gets its share of the $300 graphics card shoppers, while you get to choose between HD 4870 and GTX 260. What does NVIDIA get? Trouble. Sure the GTX 260 is selling, but selling at a loss. It takes around $100 to make the GPU alone. Selling the whole card for $299 inclusive of all taxes hurts NVIDIA, and hurts partners and retailers even more. TG Daily spoke with several retailers, some of which while maintaining anonymity, are quoted saying about the GeForce GTX 200 series as: "the worst product launch in the history of NVIDIA", also revealed is that NVIDIA could be selling "less than 3000 GTX 260/280 cards per month" in the North American markets.
In other words, retailers are not happy with NVIDIA and their stranglehold over pricing their products at both the retailer and board-partner level. Here's a chart tracking the fall of price for GTX 260:And that of a certain GeForce GTX 280 model:Speaking of the GeForce GTX 280, I admit, it's a brilliant piece of machinery. It is the one true successor to the 8800 GTX. But with products worth $300 getting close its level of performance, a 120% price margin doesn't warrant it. And also that the R700 promises significantly higher performance at a region-specific $500~$550 price-band, adds to its woes. There is a change in marketing strategy for NVIDIA and its vendors. They are cutting down on advertising GTX 200 series cards. Reason being that while sure, you have those cards selling at low prices, they can't afford to spend more in popularizing the product. Hence several e-tailers have started advertising those products NV can afford to sell at low prices. It's a great opportunity for NVIDIA to flush their current products off the market, cards such as 8800 GT, 8800 GTS 512M, 9600 series, are now selling at great prices, with discounts you can get them in the $90 ~ $150 band. It adds value since "Whatever your favorite game, an Nvidia GeForce 8800GT in SLI mode (that's 2) provides the best bang-for-the-buck performance for less than $299," says a promo.
Also with these cards facing slashes, if you happen to own a 9800 GTX, 8800 GT, GTS, etc., you can ramp up to SLI at great prices. That also applies to ATI products, with HD 3870 already below the $130 mark and MSI bringing in HD3870 X2 for $ 299 which isn't recommended for first-time buyers since HD4870 equals its performance.
Will GeForce GTX 200 series be remembered as a repeat of "Radeon 9000 > GeForce FX" episode? The answer is no, since NVIDIA does have a whole fleet of 55nm parts that increase yields ( = cheaper), making it to competitive, higher performing products. Unless that happens, and the next round of competition takes place we can't sync with what vendors are ranting about. As for now, celebrate this opportunity, gear up for summer with the latest video hardware, upgrade your rigs. God bless competition.
43 Comments on GeForce GTX 200 ''Worst Product Launch in the History of NVIDIA'' - Vendors
If you're a hardcore Crysis player, there's no reason to get an ATI card. It loves nVidia.
/endsarcasm
This is where I stop reading such useless information from people like TG.
1. The 4850 comes nowhere close to dominating a 9800GTX, whether in performance, and certainly not in heat/power consumption.
2. The $150 price difference (or whatever it is) between the 4870 and 280 exists for two reasons:
A) Nvidia brought their card out first, they are milking it. Any business who would do otherwise is foolish.
B) The 280 does something that no other card can do, whether single solution or Crossfire/SLI - it provides a virtually stutterless and seamless experience, while keeping impressive consistent framerates at very high resolutions, even under extreme conditions. The 4870 might do that, if it had a 512 bus width, yet it doesn't. The 280 presents a GPU that acts as the final and proper missing piece to the rest of a consumer's high end computer.
The 280 has shown us that we CAN accomplish the stability that we want in our 3d applications. Nvidia will continue to do so, and ATi will also follow suit in time, paving the way for a nice market until 3d applications start to demand more.
These absurd arguements need to end. Buy what you can afford and keep quiet!
These releases are like a cycle, company X wins today, loses tomorrow, wins the next day and so on. That's how it goes. I'm sure NVIDIA will pick up steam again and deliver a real kick-ass GPU in the near future. I love competition! :cool:
NVIDIA has mismanaged a lot of its recent product launches including the release of the 9800 GTX earlier this year. However, it doesn't mean that AMD is doing any better. Both the stocks for NVIDIA and AMD are in the crapper right now. And don't seem to be looking up anytime soon. Both companies are struggling, but more so AMD because their stock price is around $6 now. The 4800 series launch has been excellent compared to NVIDIA GTX 200 launch, but both companies are in deep trouble unless they revamp their marketing strategies and regain market confidence as well as the confidence of their investors.
yet why do i feel slightly insulted by your comment. *shakes my zimmerframe@u*
If ATI drops the prices of there cards again like they did for the 38XX series then Nvidia is truly doomed this go round though,
and we(consumers) will win even more =D
I really wanna see the Super R770 though
But yea me wants R770 too!
Everyone says competition means the consumer wins. This is proof, people should be happy.